Is Your Business a Fraud Victim?

Business Fraud - Complete Controller

Your business might have installed security systems in office areas, and you may have security checks in your accounting software. Procedures are implemented to stop fraud, but even then, fraudulent practices can be brewing. As a small business owner, you must not only rely on carrying out day-to-day business operations and bookkeeping duties. You must look closely for warning signs that indicate your business is a victim of fraud.

Some simple but essential warning signs indicate your business is vulnerable to fraud. Cubicle to Cloud virtual business

Too Much Access

If you have given too much access to your business’s financial bookkeeping, then your business is already at risk of fraud. A single employee should not be given all access to receiving cash, payments, tracking expenses, and various other bookkeeping functions. Instead, separate your employees for different steps of bookkeeping management. There should be separate people for bank transactions, expenses, receiving cash from customers, paying bills, and bank deposits.

The Difference in Accounting Statements

If you have an electronic system or your accounting statements are done manually on a register, the financial statements should match the cash flow statements and balance sheet. There is always a chance of honest error in manual bookkeeping, but keep an eye on any difference in the amount in accounting statements.

One Employee is Spending More than Usual

If one of your employees starts spending more than usual, keep a close eye on their activities in your business functions. There is a possibility they might be involved in some fraudulent practice. A fixed pay usually does not leave room for spending more than actual needs. CorpNet. Start A New Business Now

Always Provide Emotional Support to Your Employees

Most of the frauds in small businesses are done to meet desperate ends for an employee. Simple relaxation and support in times of distress, such as flexible office times, make your employees more loyal to the company. Get to know your employees and let them know that you support them. This personalization will make it harder for them to be disloyal to you.

Excessive Transactions

If there are numerous transactions to clear errors, it might be done to hide some fraud. If there is more than one payment for a single bill, it might be a case of fraud again. Always keep a sharp eye on the bookkeeping in your business.

Expanding Standard Expenses

Employees of a business are given various privileges. They can be paid credit for their phone calls during business functions. Many are provided fuel for their cars or other travel and transportation expenses. Some employees may try to earn a profit for themselves out of the expenses that your company pays. For example, say they get a $15 bill for a taxi ride, which can easily be availed for less than $10. Many use office phones for private calls. The employee should produce a receipt and claim to minimize personal profits on such claims.  

Overcharging the Company Cards

Many businesses give corporate credit cards to their employees when they are going on a business trip. When the credit card bill arrives, do not unthinkingly sign the bill. Check the outlets where this card had been used. Your business money should not be used for an employee’s recreational activities during business trips other than necessary expenses unless approved beforehand. ADP. Payroll – HR – Benefits

Double Billing

Many frauds fall into a double billing fraud type. An employee uses a business credit card to make an expense. They again submit the receipt for the same expense to reimburse the money, hoping you won’t notice. There should be a strict procedure to keep a check and balance on double billing frauds.

Refusal to Leave Bookkeeping Tasks to Others

If an employee works alone in a company and does not allow others to “look over their shoulder,” their activities must be checked. They might be involved in fraudulent practices and attempting to hide their activities.

Unusual Working Hours

If an employee has a routine of unusual working hours, they might also be involved in fraud in your business bookkeeping. For example, they leave later than regular office times and do overtime without a demand for extra payment. These signs of special interest in your business lead to negative behavior.


Your business can be more vulnerable to fraud than you think, even if you have safety measures in place. You must be aware of unusual practices going on in your office. Build a good relationship with your employees. At the same time, keep a close look at the practices in your office to prevent fraud in your business.

Complete Controller. America’s Bookkeeping Experts About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. LastPass – Family or Org Password Vault